Author Question: In November 2008, the Fed began its first round of quantitative easing. In total, the Fed conducted ... (Read 41 times)

haleyc112 · **on:** Jun 29, 2018

In November 2008, the Fed began its first round of quantitative easing. In total, the Fed conducted ________ rounds of quantitative easing before ending the program in October 2014.

A) 2 B) 3 C) 4 D) 5

Question 2

Suppose you withdraw 1,000 from your savings account and put it under your mattress. Briefly explain how this will affect M1 and M2.

What will be an ideal response?

Qarqy · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

M2 will not change and M1 will rise by 1,000. When under your mattress, the 1,000 would be counted as currency. Going from a savings account to currency would raise M1, but both are part of M2, so M2 would not change.